ADB exits minority stake in India's ReNew to CPPIB for $144m
Canada Pension Plan Investment Board (CPPIB) has invested $144 million in Indian renewable energy producer ReNew Power Ventures, providing an exit for the Asian Development Bank (ADB).
CPPIB will acquire a 6.3% stake in ReNew currently held by ADB, according to a statement. The development finance institution (DFI) acquired its interest in 2014 for $50 million, as part of a consortium including Goldman Sachs and Global Environment Fund that committed $140 million overall.
ReNew was founded in 2011 and currently has more than 3 gigawatts of wind and solar projects at various stages of development across India. Its solar power initiatives include both utility-scale energy projects and rooftop solar panel installation, primarily catering to enterprise customers.
Goldman Sachs has been a significant backer of ReNew: AVCJ Research shows the firm participating in four investment rounds since 2011. Additional investors include the Abu Dhabi Investment Authority (ADIA) and the Overseas Private Investment Corporation (OPIC), a DFI backed by the US government that committed $250 million in debt funding to ReNew in 2016.
“India’s overall power industry continues to grow and we see solar and wind as attractive clean energy sources to meet the country’s growing demand for electricity,” said CPPIB Managing Director Scott Lawrence. “We look forward to a long-term partnership with ReNew Power’s excellent management team which has a proven track record as a reliable, experienced developer and operator.”
CPPIB manages C$328 billion ($264 billion) in assets worldwide, across a range of asset classes including public equities, private equities, real estate, infrastructure and fixed income.
As of September 2017, C$6.1 billion of this portfolio was in India, where the pension plan's investments include IndoSpace Core, a logistics-focused joint venture with IndoSpace to which CPPIB committed $500 million last year. Other recent investees include the cell tower arm of Bharti Airtel and listed financial institution Kotak Mahindra Bank.
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